With this, petrol will be cheaper by Rs 9.5, whereas diesel will be cheaper by Rs 7.
The Central government on Saturday announced a sharp decrease in excise duty on fuel prices. Union Finance Minister Nirmala Sitharaman said that the excise duty on petrol will be slashed by Rs 8 per litre, whereas the excise duty on diesel is reduced by Rs 6 per litre. With this, petrol will be cheaper by Rs 9.5, whereas diesel will be cheaper by Rs 7.
"We are reducing the Central excise duty on petrol by Rs 8 per litre and on Diesel by Rs 6 per litre. This will reduce the price of petrol by Rs 9.5 per litre and of diesel by Rs 7 per litre. It will have a revenue implication of around Rs 1 lakh crore/year for the government," Sitharaman said.
She has also asked the states to exhort a reduction in excise duty.
In a bid to tackle rising inflation and provide a support mechanism to those struggling with rising prices, the finance minister announced a slew of other measures. The union minister has announced a fertilizer subsidy of Rs 1.10 lakh crore for farmers. The government has also announced a subsidy in gas cylinders of Rs 200 (up to 12 cylinders) to over 9 crore beneficiaries of Pradhan Mantri Ujjwala Yojana. The move has a revenue implication of around Rs 6,100 crore a year.
Sitharaman also announced a reduction in import duty on plastic products and raw materials. Moreover, the government is also working on calibrating customs duty on raw materials and intermediaries to reduce prices.